Economic uncertainty and the rise of artificial intelligence (AI) are key reasons Australians are choosing to stay in their current jobs, according to a study commissioned by professional networking platform LinkedIn.

Of the 2,000 Australian adults surveyed by Censuswide, 51 percent said they intended to look for a new job in 2026, down from 59 percent in 2025.

Over two-thirds of respondents said finding employment had become more challenging over the past year, while four out of five felt unprepared to search for a new role.

LinkedIn career expert Brendan Wong said these factors were driving what he described as a “job-hugging” trend.

“Now, because of the way the job market is, people prefer stability, so they’re retaining their jobs, not because they particularly like them,” he told AAP.

“It’s definitely replaced what we saw a year or two ago when there was quiet-quitting.”

Quiet quitting refers to employees doing only the minimum required work, without going above and beyond their job duties.

Government figures show Australia’s job market has cooled, even though the unemployment rate remained steady at 4.3 percent.

In November, the number of full-time jobs fell by 57,000, while an increase in part-time work only partly made up for the loss.

This helps explain why many workers are choosing to stay in their current roles rather than look for new jobs.

What Role Does AI Play?

Beyond economic conditions, the study also points to growing uncertainty around AI.

The LinkedIn study found that AI played a role in Australians’ “job hugging” trend, with more than one in three expressing uncertainty about how AI was being used in the hiring process.

“It is changing the traditional processes of job interviews and applications,” Wong said.

“Even at the start of the vetting process when people are putting forward applications, they know AI is potentially the reason why they may not get to a hiring manager.”

The change in Australia’s labour market corresponds to the global trend.

LinkedIn research published on Jan. 7 found that 93 percent of recruiters globally indicated a plan to increase the use of AI in 2026, while 59 percent say AI is already helping them vet candidates with skills they might have otherwise overlooked.

The research found two-thirds of recruiters (66 percent) planned to increase their use of AI for pre-screening interviews in 2026, with 70 percent believing it would help them have more meaningful conversations with candidates.

AI Not Entirely to Blame

While significantly changing the global labour market, AI is not the only reason for slow hiring, according to the report.

“The labour market is sluggish due to macro factors more than AI, and we do not see AI impacting entry-level roles—yet,” the report states.

LinkedIn data showed economic uncertainty and monetary policy shifts were the primary drivers of reduced hiring.

“Advanced economies are struggling the most, with hiring down 20 percent to 35 percent compared to pre-pandemic levels,” the report said.

“Conversely, emerging markets like India and the UAE are showing ongoing strength.

“While AI’s impact on work may shift in the years to come, this is the moment for business leaders to rethink talent strategies by leveraging AI‑driven tools to accelerate hiring and build pipelines for critical emerging roles.”

AAP contributed to this report.